How can electronics retailers keep pace?
Online electronics retailers have plenty to be excited about. Global eCommerce electronics sales are projected to surpass $300 billion in 2018 – a 10.7% increase from the previous year. But taking advantage of this surge in sales is not a given, and electronics merchants will have to adapt to meet the rapidly evolving needs of their online shoppers. In particular, nurturing customer loyalty and offering an omni-channel multi-touch shopping experience will be critical going forward. Riskified’s new report has tips to help retailers keep pace in this competitive environment, and shows how shoring up fraud operations is key to achieving these business objectives.
Electronics customers hurry back
Loyal lifetime customers in electronics are particularly valuable, because when they return to a store, they don’t wait long. Riskified has found that shoppers who bought drones, appliances or cell phone accessories return to shop again within a month. For comparison, fashion and cosmetics shoppers typically wait around twice that long between visits.
This tendency means that losing a customer because of poor service–or falsely declining their order from fear of fraud–can cost electronics merchants a very significant Customer Lifetime Value, and that’s on top of the hit to your reputation. Add to that the squandered marketing costs of acquiring this customer. So it’s critical that you offer a great customer experience, to encourage loyalty & customer retention.
Automation is key to meeting fulfillment demand
According to a recent survey by Internet Retailer, over 20% of consumers say anything beyond 1 or 2 day shipping is unacceptable. Indeed, Riskified has observed that nearly 20% of electronics shoppers opt to pay for premium shipping (meaning same or next day delivery).
In order for merchants to continue to satisfy customers, they will have to streamline fraud review by turning to automation. In 2017, the average North American merchant manually reviewed 8% of their orders (and 11% of orders for over $100). The very chance of an order being manually reviewed means guaranteeing next-day shipping is very risky.
Having a manual element in the review process greatly increases a merchant’s chance of not meeting an SLA, and hurting their brand. In terms of customer experience, a store’s manual review rate is actually more important than the fraud rate: good customers don’t feel fraud, but they do feel effects of manual review.
These insights were just a few excerpts from our new report. To learn more about the shopping preferences of electronics consumers, as well as fraud trends in this market, get your complimentary copy here.